Jafri Basron: Temasek has ploughed a lot of money into these companies but the results thus far have been very dismal to say the least. Here is a list of businesses that are in the gutter or already deader than dead.
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Edited: Jun 10
List of Temasek-backed companies that are going to or have already gone belly up
List of Temasek-backed companies that are going to or have already gone belly up
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Temasek spent billions on US tech stocks before July selloff
Singaporean state-owned investor Temasek Holdings Pte. spent billions of dollars in the second quarter buying shares in US technology giants, just before the sector dropped in July.
Temasek increased the value of its holdings in 11 big tech firms by US$3.3 billion in the three months ended 30 June, according to an analysis of its two most recent 13F filings. The vast bulk of the increase – some $3.2 billion – went into six of those firms: Microsoft Corp., Apple Inc., Nvidia Corp., Alphabet Inc., Meta Platforms Inc. and Amazon.com Inc.
By the end of July, however, most of those companies saw their stocks slide amid concern about the extent of AI-related gains and fears of a recession. Alphabet and Amazon’s share prices have fallen by about 12 per cent since the end of June, while Microsoft’s are down around 7 per cent over that period.
Many of the tech shares held by Temasek have started to recover this week and it’s unclear how it invested since June 30.
The firm may have made gains depending on its purchase price, sold right before the fall or even snapped up more as they declined in an effort to buy the dip. With a net portfolio value of $389 billion (US$295 billion) as of 31 March, the purchases would’ve represented around 1 per cent of its total holdings.
The multi-billion dollar buying spree underscores Temasek’s commitment to ramping up investments in the US, which it said last month would be the largest destination for its capital with plans to invest US$30 billion over the next five years.
https://www.bloomberg.com/news/articles/2024-08-15/temasek-spent-billions-on-us-tech-stocks-before-the-selloff
Olam denies media reports of US$50 billion Nigerian forex fraud, sets up review
OLAM Group said it “categorically denies” allegations made in recent media reports about its Nigerian unit, Olam Nigeria, and its subsidiaries being involved in a multi-billion dollar fraud.
On Monday (Sep 11), the food and agri-business giant said it “refutes all baseless and inflammatory statements” made in two articles published online by Daily Nigerian and PrimeBusiness.Africa last week.
However, in view of the nature of the allegations made, its board has directed the audit committee to “nevertheless conduct a review of the matter”.
For the same period, Olam Nigeria’s capital importations stood at US$2.4 billion in total.
Further to its statement, the group stressed that there are no "fictitious Nigerian directors" in Olam Nigeria. The group also doesn’t have a “network of shell companies” as stated in the articles.
“All Olam Nigeria subsidiaries are formed for a proper corporate purpose and are audited by Ernst & Young Global's member firm in Nigeria,” says the group.
“With regard to the case in the Ivory Coast referred to in the articles, after detailed audit and reconciliation, a sum of CFA francs 2.925 billion (US$5.29 million or $7.2 million) inclusive of transaction costs and tax adjustments was finally assessed and paid in 2021, and not the amount of US$262.7 million referred to in the articles,” the group adds.
“With respect to the disclosures in the articles concerning the US Commodities Futures Trading Commission and the ICE Futures US, these relate to trading activities undertaken by the relevant Olam entities. These matters were settled by Olam with the relevant regulatory authorities without admission or denial of the alleged breaches, and have been previously disclosed by the respective authorities,” it continues.
Finally, the group notes that Olam Nigeria itself has responded to the various requests for information by the authorities and that it will cooperate with further requests.
Olam Group, which has its origins in Nigeria, is now operating in 67 countries with an annual group revenue of US$40.77 billion in FY2022.
Olam’s Nigerian operations continue to be a “significant contributor” to the group with an annual revenue of US$3.11 billion as at FY2022. Olam Nigeria has some 4,500 employees across its businesses including wheat milling, pasta manufacturing and so on over 21 manufacturing plants.
“Olam plays an important role in addressing food security challenges facing Nigeria. We are one of the largest non-oil sector investors in Nigeria,” says the group.
The company's single largest shareholder is Temasek Holdings, which holds 51.15% of the shares, according to its most recent annual report.
Year to date, Olam shares were down more than a fifth. On Sept 18, Keppel REIT will replace Olam on the STI reserve list.
https://www.businesstimes.com.sg/companies-markets/olam-denies-media-reports-us50-billion-nigerian-forex-fraud-sets-review
Temasek’s net portfolio value down by 5.2% y-o-y to $382 bil; reports $7.3 bil loss
Singapore state-owned investment firm Temasek Holdings has reported a net portfolio value of $382 billion for the FY2023, 5.2% lower than its previous net portfolio value of $403 billion in the year before.
The group reported a loss of $7.3 billion, down from last year’s net profit of $10.6 billion. According to the group, this was attributable to changes in accounting standards, which includes mark-to-market (MTM) gains and losses. After adjusting for MTM, the group would’ve reported a profit of $14.7 billion. Under the new accounting standards that were introduced in 2018, this is the first time the group reported a loss, noted chief financial officer Png Chin Yee.
Temasek’s one-year total shareholder return (TSR) was -5.07%, while its TSR since its inception in 1974 remained at 14%, unchanged from last year.
Investments and geographical breakdown
Over FY2023, Temasek invested $31 billion and divested $27 billion, resulting in a net investment of $4 billion. According to the group, its investment pace was slowed due to its “cautious approach amidst global uncertainties”. Deal activity also slowed down globally as liquidity tightened.
As at March 31, Temasek’s portfolio remains anchored in Asia with a total of 63%. In terms of geography, Singapore, China and the Americas remained the group’s three largest markets by underlying exposure with 28%, 22% and 21% respectively.
“We continued to invest into opportunities that are aligned with long-term structural trends, and engaged our large Singapore portfolio companies to seek out opportunities of the future. We also reduced certain positions in the rebalancing of our portfolio, including where we see long term structural risks, in ensuring that we continue to maintain the strength of our balance sheet in the pursuit of a resilient and forward-looking portfolio,” says the group in its July 11 statement.
Over the decade, the group has invested a total of $326 billion and divested $248 billion. As at March 31, the group’s underlying exposure to developed economies, including Singapore, North America, Europe, and Australia & New Zealand was 64%, compared to 58% in 2013.
The group has also announced plans to open a new office in Paris in a bid to expand its global footprint in places where they see “the opportunity to allocate significant capital for growth”.
Sectoral breakdown
In terms of sectors, transportation and industrials made up the majority of Temasek’s portfolio at 23%, one percentage point higher y-o-y.
Financial services, which stood on top in the year before, fell to second place at 21%, down two percentage points y-o-y.
Telecommunications, media and technology rounded up the top three sectors at 17% in FY2023, down one percentage point y-o-y.
During a briefing to the media, Png noted that the group has been growing its focus sectors – consumer, media & technology, life sciences & agri-food and financial services (non-bank) since 2011. In 2011, the group’s focus sectors stood at $193 billion or 5% of its portfolio compared to 2023’s $382 billion or 32% of its portfolio.
Since 2011, the group’s focus sectors outperformed its overall portfolio by four percentage points, Png adds.
Temasek’s unlisted assets also outperformed its listed assets with an internal rate of return (IRR) of 14.4% over a 20-year period. This is compared to the IRR of 8.0% for its listed assets and 10.1% for its overall assets over the same period.
Early stage investments, which are capped at 6% of Temasek’s portfolio, have also outperformed the group’s overall portfolio with a seven-year IRR of 10.9% versus its overall portfolio’s IRR of 7.8%.
As at March 31, the group’s ended the year with net cash. Of its portfolio, liquid and sub-20% listed assets stood at 27% while unlisted assets made up 53% of its portfolio.
FTX
On FTX, chief investment officer Rohit Sipahimalani said that the decision to invest into the crypto firm was one that the group was “disappointed” in, but pointed out that it was part of their early stage investing portfolio and that the risks involved were mitigated by the group keeping it to less than 6% of its overall portfolio.
That said, he stressed that the group had conducted its due diligence and that FTX had seemed like a company that had good tech with checks showing that they're compliant with regulations.
Temasek had made the decision to write down over US$200 million ($268.3 million) that was invested into FTX in November 2022. The group subsequently announced that they had cut the pay of those who were responsible for the investment in FTX in May due to the "reputational hit", says Sipahimalani.
Outlook
Looking ahead, the group highlighted its focus on three growth engines, which are investment, partnership and development.
The investment engine comprises 86% of the group’s portfolio, of which 40% are made up of its Singapore portfolio companies such as Seatrium, Singapore Airlines (SIA) and Olam Group. The remaining 46% are made up of global direct investments.
The partnership engine makes up 10% of Temasek’s portfolio which consists of assets under management (AUM) businesses with about $79 billion of AUM. These businesses provide products like private equity, private credit, public market investing, and capital solutions.
Finally, the development engine, which makes up about 4% of Temasek’s portfolio, will focus on investing in cutting edge innovations in areas such as sustainable energy solutions, quantum computing and deep tech; as well as building enterprises for the future in areas such as life sciences, data solutions and cybersecurity.
“As we navigate an increasingly complex world, there are significant key challenges in the future. For the first time in decades, sticky inflation and tighter monetary conditions are manifesting themselves in significantly higher interest rates, says Dilhan Pillay, executive director and CEO of Temasek Holdings.
“The investment climate has become much more complex than what we have encountered since the Global Financial Crisis (GFC) – the confluence of rising geopolitical tensions, the risk of decoupling amidst a rethinking of globalisation, the emergence of potentially restrictive, nationalistic and protectionistic policies amidst the proliferation of foreign investment regimes and the costs associated with energy security and energy transition portend lower global growth and lower real returns, and are challenging issues that investors will have to grapple with,” he adds. “In this era of volatility and uncertainty, we must anticipate not just the road ahead, but also what lies around the corner. To this end, in 2019, Temasek developed our T2030 strategy – a 10-year roadmap to guide our strategic planning, capability building, and institutional development initiatives. It guides us towards achieving our objective of sustainable value over the long term, in line with our purpose.”
https://www.theedgesingapore.com/capital/results/temaseks-net-portfolio-value-down-52-y-o-y-382-bil-reports-73-bil-loss
Temasek-backed Tessa Therapeutics to cease operations after failure to raise funding
https://www.businesstimes.com.sg/startups-tech/startups/temasek-backed-tessa-therapeutics-cease-operations-after-failure-raise
FUCK WHORE JINX AND TEMASICK!!!
Looks like Temasick is getting seriously sick :(
Add Amber Group as no.15 to the list: